I think that focusing on UGC is a great idea for B2C companies, particularly in the fashion, food or travel industries. Tapping in to the way your audience is already using social to create posts around these topics, particularly on visual platforms such as Instagram, is a great way to expand your own content base (especially if resources are limited or you're just starting out). Of course, it's also great for engagement and brand visibility, as well as generating social proof.

There's a lot to be said for influencer marketing but I think for certain brands, UGC can actually be more effective because of the trust established through this method. I personally would be more inclined to buy from brands with a lot of great UGC to their name than those which rely solely on more traditional media. Quality is important though (which can't always be guaranteed with UGC) and brands should be selective about the UGC they actively promote to make sure it's in line with their aesthetic and overall brand identity. Re. examples, take a look at Urban Outfitters #uoonyou campaign - I think they started this a few years ago now and it's still going strong. I also like what Aerie are doing with their #AerieREAL campaign.

I totally agree with you about the product quality which of course can not be guaranteed by UGC - and as you said, by having a lot of great UGC the brands can influence our buying decision-making by making sure they have a positive brand identity.

The watch brand CLUSE for example says that UGC is vital because of its authenticity. They have a Lookbook on their website, where customers can be featured. Instagrammers are being super creative and customers can get inspired by authentic pictures - best social proof.

Hi! Since I work in the CPG (Food) world where UGC is valued a lot, I'd like to contribute my thoughts here.

UGC - extremely important specifically in food and fashion, where the products are very commoditized and people purchase products in the moment. Studies also have shown that consumers trust content and recommendations from micro-influencers more than celebrities, who are paid to endorse products.

More and more brands are paying to have the UGC. Brands will give free products to active bloggers & instagrammers for quality contents in return. And it is getting more and more expensive. For a blogger who have 50K+ Instagram followers and a dedicated email subcription community, it can cost a brand thousands of $$ to have a customized blog post. A lot of consumers probably don't realize this - if they see a really pretty Instagram picture, changes are it is hashtagged #ad or #sponsored.

UGC is also linked with Affiliate strategy, meaning that bloggers can drive traffic to the product site while getting 10 - 25% commission on the revenue.

The King of UGC definitely goes to Starbucks who has such a strong following and it is seen as part of the lifestyle. Every winter, Starbucks hosts Red Cup challenge when the brand asks consumers to draw on the holidy red cup and Starbucks will share the pictures. It is so much fun to see the creativity in the community.

Thanks for your input and the named example of Starbucks and its "Red Cup Challenge". I think there is also a "White Cup Challenge"?!

Starbucks seems to understand its audience and have figured out how to get free content from its customers. But, while Starbucks is getting promoted, so it is the consumer by being featured with its content by Starbucks on Instagram or other social media channels. A win-win, right?

But, I see your point: when more and more brands pay influencers for promoting their product, UGC by Influencers its getting more and more expensive. But as you have said, "studies have shown that consumers trust content and recommendations from micro-influencers more than celebrities, who are paid to endorse products."
So my question is: do you think the same is going to happen with famous paid influencers?

Yes I think the same is going to happen with famous paid influencers. Those famous ones will still have their income - with much bigger brands and they will create much bigger content campaigns. But they won't be the first choice of brands who are looking for micro-influencers who recommend the products geniunely. Our company has recently switched from paying "celebrities" to look for new micro-influencers that will actually use our products.